Planar Announces Sale of Electroluminescent (EL) Business to Beneq

November 30, 2012 09:00 AM Eastern Standard Time

BEAVERTON, Ore.--(BUSINESS WIRE)--Planar Systems, Inc. (NASDAQ: PLNR), a worldwide leader in specialty
display solutions, announced the sale of its electroluminescent (EL)
display business to Beneq Oy, a supplier of production and research
equipment for advanced thin film coatings. Under the terms of the
transaction, consideration consists of a $6.5 million base purchase
price, of which $3.9 million was paid in cash at closing and $2.6
million was paid in the form of a promissory note. The transaction terms
also provide for up to $3.5 million in possible additional cash
consideration which can be earned in calendar years 2013, 2014, 2015
based upon the EL business achieving certain financial results.

“The sale of our EL business to Beneq represents an important milestone
in the execution of our strategic plan,” said Gerry Perkel, president
and CEO of Planar. “We were able to add cash to our balance sheet and
are now able to focus more of our attention and resources on our digital
signage and interactive display product lines. In addition, we believe
EL customers and employees will benefit from having the EL business now
under the direction of a recognized leader in the use of atomic layer
deposition (ALD) technology, a critical component of EL display
production.” The Company will be working with Beneq after the closing to
ensure customers are fully supported in the transition.

REVISIONS TO THE BUSINESS OUTLOOK FOR THE FIRST QUARTER OF FISCAL 2013

As a result of the sale of the EL business, the Company is updating its
forward looking estimates for the first quarter of fiscal 2013. The
Company currently anticipates revenue in the range of $41 to $44 million
and a Non-GAAP loss of $0.05 to a Non-GAAP profit of $0.01 in the first
quarter of 2013, excluding the gain or loss recorded on the sale of the
EL business.

ABOUT PLANAR

Planar Systems Inc. (NASDAQ: PLNR) is a global leader in digital display
technology providing premier solutions for the world's most demanding
environments. Retailers, educational institutions, government agencies,
businesses, utilities and energy firms, and home theater enthusiasts all
depend on Planar to provide superior performance when image experience
is of the highest importance. Planar solutions are used by the world’s
leading organizations in applications ranging from digital signage to
simulation and from interactive kiosks to large-scale data
visualization. Founded in 1983, Planar is headquartered in Oregon, USA,
with offices, manufacturing partners, and customers worldwide. For more
information, visit www.planar.com.

“Safe Harbor” Statement under the Private Securities Litigation Reform
Act of 1995: This release contains “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of 1995
relating to Planar’s business operations and prospects, including
statements relating to the Company’s expected levels of revenue,
Non-GAAP income, and any gain or loss on the sale of the EL business in
the first quarter of fiscal 2013, and the other statements made under
the heading “Business Outlook,”. These statements are made pursuant to
the safe harbor provisions of the federal securities laws. These and
other forward-looking statements, which may be identified by the
inclusion of words such as “expects,” “anticipates,” “intends,” “plans,”
“believes,” “seeks,” “estimates,” “goal” and variations of such words
and other similar expressions, are based on current expectations,
estimates, assumptions and projections that are subject to change, and
actual results may differ materially from the forward-looking
statements. These statements are not guarantees of future performance
and involve certain risks and uncertainties that are difficult to
predict. Many factors, including the following, could cause actual
results to differ materially from the forward-looking statements: poor
or further weakened domestic and international business and economic
conditions; changes or continued reductions in the demand for products
in the various display markets served by the Company; any delay in the
timing of customer orders or the Company’s ability to ship product upon
receipt of a customer order; the extent and timing of any additional
expenditures by the Company to address business growth opportunities;
any inability to reduce costs or to do so quickly enough, in either
case, in response to reductions in revenue; adverse impacts on the
Company or its operations relating to or arising from any inability to
fund desired expenditures, including due to difficulties in obtaining
necessary financing; changes in the flat-panel monitor industry; changes
in customer demand or ordering patterns; changes in the competitive
environment including pricing pressures or the ability to keep pace with
technological changes; technological advances; shortages of
manufacturing capacity from the Company’s third-party manufacturing
partners or other interruptions in the supply of components the Company
incorporates in its finished goods including as a result of natural
disasters like the recent earthquakes and tsunami in Japan; future
production variables resulting in excess inventory and other risk
factors listed from time to time in the Company’s periodic filings with
the Securities and Exchange Commission (SEC). The forward-looking
statements contained in this press release speak only as of the date on
which they are made, and the Company does not undertake any obligation
to update any forward-looking statement to reflect events or
circumstances after the date of this press release.